LOUISIANA-PACIFIC CORP
For the period ended Dec 31, 2024. Filed Feb 19, 2025.
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FY2024 · Filed Feb 19, 2025
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Segment Information
- SEGMENT INFORMATION
We operate inthree segments: Siding, OSB, and LPSA. Our business units have been aggregated into these three segments based upon the similarity of economic characteristics, customers, and distribution methods. Our results of operations are summarized below for each of these segments separately as well as for the “Other” category, which comprises other products that are not individually significant.
The Siding segment serves diverse end markets with a broad product portfolio of engineered wood siding, trim, soffit, and fascia, including LP® SmartSide® Trim & Siding, LP® SmartSide® ExpertFinish® Trim & Siding, LP BuilderSeries® Lap Siding, and LP®Outdoor Building Solutions® (collectively referred to as Siding Solutions).
The OSB segment manufactures and distributes OSB structural panel products, including the innovative value-added OSB product portfolio known as LP® Structural Solutions (which includes LP® TechShield® Radiant Barrier, LP WeatherLogic® Air & Water Barrier, LP Legacy® Premium Sub-Flooring, LP NovaCore® Thermal Insulated Sheathing, LP® FlameBlock® Fire-Rated Sheathing, and LP® TopNotch® 350 Durable Sub-Flooring).
The LPSA segment manufactures and distributes OSB structural panel and Siding Solutions products in South America and certain export markets. This segment also sells and distributes a variety of companion products to support the region’s transition to wood frame construction. The LPSA segment carries out manufacturing operations in Chile and Brazil and operates sales offices in Argentina, Brazil, Chile, Colombia, Mexico, Paraguay, and Peru.
The accounting policies of the segments are the same as those described in the Company’s summary of significant accounting policies. We evaluate the performance of our business segments based on net sales and segment Adjusted EBITDA. Accordingly, our chief operating decision maker, the chief executive officer, evaluates performance and allocates resources based primarily on net sales and segment Adjusted EBITDA for our business segments.
Segment Adjusted EBITDA is defined as income attributed to LP before interest expense, provision for income taxes, depreciation and amortization, and excludes stock-based compensation expense, loss on impairment attributed to LP, product-line discontinuance charges, other operating credits and charges, net, loss on early debt extinguishment, investment income, pension settlement charges, and other non-operating items.
The chief operating decision maker uses both net sales and segment Adjusted EBITDA for each segment predominantly in the annual budget and forecasting process. The chief operating decision maker considers budget-to-actual variances on a quarterly basis for both measures when making decisions about the allocation of operating and capital resources to each segment. The chief operating decision maker also uses segment Adjusted EBITDA to assess the relative performance of each segment and to determine the compensation of certain employees.
Information about our product segments is as follows (dollars in millions):
| Year Ended December 31, 2024 | ||||||
|---|---|---|---|---|---|---|
| Siding | OSB | LPSA | Segment Total | Other | Consolidated | |
| Net sales | $1,558 | $1,184 | $190 | $2,932 | $9 | $2,941 |
| Cost of sales | (1,092) | (872) | (134) | (2,098) | (12) | (2,110) |
| Selling, general, and administrative expenses | (155) | (62) | (20) | (238) | (54) | (291) |
| Adjustments to Adjusted EBITDA: | ||||||
| Depreciation and Amortization | 74 | 45 | 6 | 126 | — | 126 |
| Other charges1 | 5 | 3 | — | 8 | 14 | 22 |
| Adjusted EBITDA | $390 | $298 | $42 | $730 | $(42) | $688 |
| Year Ended December 31, 2023 | ||||||
|---|---|---|---|---|---|---|
| Siding | OSB | LPSA | Segment Total | Other | Consolidated | |
| Net sales | $1,328 | $1,026 | $205 | $2,559 | $22 | $2,581 |
| Cost of sales | (1,005) | (789) | (151) | (1,945) | (42) | (1,988) |
| Selling, general, and administrative expenses | (125) | (61) | (20) | (206) | (52) | (257) |
| Adjustments to Adjusted EBITDA: | ||||||
| Depreciation and Amortization | 67 | 43 | 7 | 118 | 1 | 119 |
| Other charges1 | 3 | 2 | — | 5 | 18 | 23 |
| Adjusted EBITDA | $269 | $220 | $42 | $531 | $(53) | $478 |
| Year Ended December 31, 2022 | ||||||
|---|---|---|---|---|---|---|
| Siding | OSB | LPSA | Segment Total | Other | Consolidated | |
| Net sales | $1,469 | $2,062 | $241 | $3,772 | $81 | $3,854 |
| Cost of sales | (1,061) | (1,035) | (153) | (2,249) | (106) | (2,355) |
| Selling, general, and administrative expenses | (120) | (65) | (20) | (205) | (59) | (264) |
| Adjustments to Adjusted EBITDA: | ||||||
| Depreciation and Amortization | 46 | 71 | 8 | 125 | 4 | 129 |
| Other charges1 | 4 | 2 | 1 | 7 | 19 | 25 |
| Adjusted EBITDA | $339 | $1,034 | $77 | $1,450 | $(61) | $1,389 |
| Year Ended December 31, | |||
|---|---|---|---|
| 2024 | 2023 | 2022 | |
| NET INCOME TO ADJUSTED EBITDA RECONCILIATION | |||
| Net income | $420 | $178 | $1,083 |
| Add (deduct): | |||
| Net loss attributed to non-controlling interest | — | — | 3 |
| Income from discontinued operations, net of income taxes | — | — | (198) |
| Income attributed to LP from continuing operations | 420 | 178 | 888 |
| Provision for income taxes | 140 | 74 | 274 |
| Depreciation and amortization | 126 | 119 | 129 |
| Stock-based compensation expense | 20 | 13 | 19 |
| Loss on impairment attributed to LP | 5 | 6 | 1 |
| Other operating credits and charges, net | 8 | 18 | (16) |
| Business exit credits and charges | (14) | 32 | — |
| Pension settlement charges | — | 4 | 82 |
| Interest expense | 14 | 14 | 11 |
| Investment income | (22) | (18) | (14) |
| Other non-operating items | (9) | 39 | 15 |
| Adjusted EBITDA | $688 | $478 | $1,389 |
| Year Ended December 31, | |||
|---|---|---|---|
| 2024 | 2023 | 2022 | |
| Capital Expenditures | |||
| Siding | $108 | $212 | $316 |
| OSB | 63 | 59 | 53 |
| LPSA | 9 | 19 | 20 |
| Other | 3 | 10 | 22 |
| Total capital expenditures | $183 | $300 | $412 |
Information concerning identifiable assets by segment is as follows (dollars in millions):
| December 31, | ||
|---|---|---|
| 2024 | 2023 | |
| Identifiable Assets | ||
| Siding | $1,319 | $1,291 |
| OSB | 554 | 526 |
| LPSA | 145 | 165 |
| Other | 551 | 455 |
| Total assets | $2,569 | $2,437 |
Other segment related assets include cash and cash equivalents, short-term and long-term investments, corporate assets, and other items.
Information concerning our geographic segments is as follows (dollars in millions):
| Year Ended December 31, | |||
|---|---|---|---|
| 2024 | 2023 | 2022 | |
| GEOGRAPHIC LOCATIONS | |||
| Total Sales—Point of origin | |||
| U.S. | $2,611 | $2,265 | $3,329 |
| Canada | 675 | 610 | 827 |
| LPSA | 214 | 241 | 273 |
| Inter-segment sales | (559) | (535) | (575) |
| Total Sales | $2,941 | $2,581 | $3,854 |
| Operating profit (loss) | |||
| U.S. | $502 | $304 | $1,084 |
| Canada | 48 | 40 | 129 |
| LPSA | 36 | 35 | 70 |
| Other operating credits and charges, net and loss on impairments of assets | (10) | (49) | 15 |
| General corporate expense, loss on early debt extinguishment, other income (expense), interest, net and equity in unconsolidated affiliates | (16) | (78) | (139) |
| Income before income taxes, including equity in unconsolidated affiliates | 560 | 252 | 1,159 |
| Provision for income taxes | (140) | (74) | (274) |
| Income from continuing operations | $420 | $178 | $885 |
| Loss attributed to noncontrolling interest | — | — | 3 |
| Income attributed to LP from continuing operations | $420 | $178 | $888 |
| IDENTIFIABLE TANGIBLE LONG LIVED ASSETS | |||
| U.S. | $1,063 | $996 | $939 |
| Canada | 468 | 472 | 356 |
| South America | 93 | 104 | 87 |
| Total identifiable tangible long lived assets | $1,624 | $1,572 | $1,382 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.